British Chancellor of the Exchequer Jeremy Hunt announced in his Autumn Statement on Thursday a package of tax increases and cuts in public spending worth a total of £55 billion. The measures represent a change in Conservative policies compared to the previous government's sweeping tax cuts, which caused turmoil in the markets.
Hunt stated the threshold for the highest tax rate will be lowered from £150,000 to £125,000. From January 1 to March 28, the UK will increase the windfall tax for energy companies from 25% to 35%, as well as a 45% levy on electricity generators to raise £14 billion in 2023, with Hunt stressing these taxes must be "temporary and not deter investment." Personal income tax, national insurance and inheritance tax thresholds and allowances will be frozen until April 2028.
Hunt confirmed the UK will go ahead with constructing the Sizewell C nuclear power plant and that the government will add £6 billion in energy funding. The energy bill cap will remain at £2,500 until April, when it will rise to £3,000. The minimum wage will rise by 9.7% to £10.42 an hour, while state pension, benefits and tax credits will be increased by 10% to counter inflation.
